North Korea continues to declare that it has not had a single case of COVID-19, but health experts find it inconceivable that the infectious disease would not be in the country given its proximity to China and South Korea, two early victims of the pandemic. A coronavirus outbreak in the North could be devastating, says Asian affairs and security expert Victor Cha, as it would act on an extremely vulnerable population with already-compromised immune systems and outdated health care infrastructure.

Cha, professor of government and holder of the D.S. Song-KF Chair in Government and International Affairs at Georgetown University, has joined Shorenstein APARC as the Koret Fellow in Korean Studies for the winter quarter of 2020. He spoke with APARC via videoconferencing about the threat of COVID-19 to North Korea, the deadlock in the diplomacy of denuclearization, and the North Korean human rights problem.

COVID-19 or not, the Kim regime has recently stepped up again its weapons testing. The North typically resorts to missile tests, notes Cha, in periods of non-dialogue with the United States, and the data also shows that North Korea will bolster weapons testing before and after U.S. presidential elections.

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What is to be done about engagement with the North? Cha believes that any new U.S. administration should prioritize three areas: first, focus not only on North Korea’s nuclear program but also on its ballistic missile delivery capability; second, enable the flow of humanitarian assistance into the country; and third, genuinely work with our allies and partners in the region, “who have tended to be neglected lately and seen in largely transactional terms.”

While at Stanford, Cha has been researching a project that he calls “Binary Choices” and that examines how U.S. allies and partners in Asia react when they are forced to choose between the United States and China over various issues. Regardless of how one feels about the U.S.-China trade war, Cha concludes, the question is if we are “calculating the other externalities, in terms of how our allies make choices, into our net assessment of whether a policy towards China is working or not.”

Watch the Q&A with Cha above or on our YouTube channel:

The Stanford Center at Peking University (SCPKU), the Center on Democracy, Development and the Rule of Law (CDDRL), and the APARC China Program jointly hosted a workshop on China’s Belt and Road Initiative (BRI) in early March. The workshop, held on March 2 and 3, welcomed researchers from around the world with expertise in the Initiative. Unfortunately, because of the rapidly developing health emergency related to the coronavirus, participants from not only China, but also Japan, were prevented from attending. As described by Professor Jean Oi, founding director of SCPKU and the China Program, and Professor Francis Fukuyama, director of CDDRL and the Ford Dorsey Master's in International Policy, who co-chaired the workshop, the meeting aimed to provide a global perspective on the BRI, consolidate knowledge on this opaque topic, and determine the best method and resources for future research.  

The workshop began with presentations from several of the invited guests. Dr. Atif Ansar from the University of Oxford’s Saïd Business School kicked off the first day by describing not only the tremendous opportunity that the BRI presents to developing economies, but also the serious pitfalls that often accompany colossal infrastructure projects. Pointing out the poor returns on investment of mega infrastructure projects, Ansar examined the frequest cost and schedule overruns, random disasters, and environmental degradation that outweigh the minimal benefits that they generally yield. China’s own track record from domestic infrastructure projects does little to mitigate fear of these risks, Ansar claimed. In response, he urged professional management of BRI investments, institutional reforms, and intensified deployment of technology in BRI projects. Dr. Ansar was followed by Dr. Xue Gong of the S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore. Dr. Gong’s analysis centered on the extent to which China’s geopolitical motivations influenced its outward foreign direct investments (OFDI). Although her research was still in the early stages, her empirical analysis of China’s OFDI inflows into fifty BRI recipient countries from 2007-2018 nevertheless revealed that geopolitical factors often outweigh economic factors when it comes to China’s OFDI destinations.

Participants then heard presentations from Amit Bhandari of Gateway House: Indian Council on Global Relations and Professor Cheng-Chwee Kuik of the National University of Malaysia. Mr. Bhandari’s talk focused on Chinese investments in India’s six neighboring countries, which tend to center more on energy rather than connectivity projects. He first found that the investments are generally not economical for the host countries because they come with high costs and high interest rates. Secondly, he argued that these projects often lacked a clear economic rationale, appearing instead to embed a geopolitical logic not always friendly to India. Professor Kuik, by contrast, provided a counterexample in his analysis of BRI projects in Southeast Asia. He described how, in Southeast Asia, host countries’ reception of the BRI has varied substantially; and how various stakeholders, including states, sub-states and other entities, have used their leverage to shape outcomes more or less favorable to themselves. Kuik’s analysis injected complexity into the often black-and-white characterizations of the BRI. He highlighted the multidimensional dynamics that play out among local and state-level players in pursuit of their goals, and in the process of BRI implementation.

Professor Curtis J. Milhaupt and Scholar-in-Residence Jeffrey Ball, both at Stanford Law School, followed with individual presentations on the role of State-Owned Enterprises (SOEs) in the BRI and the emissions impact of the BRI on climate change, respectively. Professor Milhaupt  characterized Chinese SOEs as both geopolitical and commercial actors, simultaneously charged with implementing Party policies and attaining corporate profits. Chinese SOEs are major undertakers of significant overseas BRI projects, acting not only as builders but also as investors, partners, and operators. This situation, Milhaupt asserted, carries significant risks for SOEs because these megaprojects often provide dismal returns, have high default rates, and can trigger political backlash in their localities. Milhaupt highlighted the importance of gathering firm-level data on businesses actually engaged in BRI projects to better infer geostrategic, financial, or other motivations. Jeffrey Ball turned the discussion to carbon emissions from BRI projects and presented preliminary findings from his four-country case studies. He concluded that, on aggregate, the emissions impact of the BRI is still “more brown than green.” Twenty-eight percent of global carbon emissions may be accounted for by BRI projects, Ball asserted, underscoring the importance of the BRI to the future of global climate change.

The day concluded with presentations by  Michael Bennon, Managing Director at the Stanford Global Projects Center, and Professor David M. Lampton, Oksenberg-Rohlen Fellow at the Freeman Spogli Institute for International Studies. Bennon first presented findings from two empirical case studies of BRI projects and then went on to describe how the BRI is now practically the “only game in town” for infrastructure funding for developing countries. Lengthy environmental review processes at Western multilateral banks have turned the World Bank, for example, from a lending bank into a “knowledge bank,” he argued. He also highlighted that, in general, economic returns on BRI projects for China are very poor, even though recipient countries may accrue macroeconomic benefits from these projects. Finally, Professor Lampton turned the discussion back to Southeast Asia, where China is currently undertaking massive cross-border high-speed rail projects through eight ASEAN countries. He described how each host country had varying capacity to negotiate against its giant neighbor, and how the sequential implementation of these cross-border rail projects also had varying impacts on the negotiating positions of these host countries. BRI played out differently in each country, in other words, eliciting different reactions, push-backs and negotiated terms.

The second day of the workshop was dedicated to working toward a collaborative approach to future BRI research. The group discussed the key gaps in the existing research, including how to know what China’s true intentions are, how to measure those intentions, who the main players and their interests in both China and the host countries are, and even what the BRI is, exactly. Some cautioned that high-profile projects may not be representative of the whole. Participants brainstormed about existing and future sources of data, and stressed the importance of diversifying studies and seeking empirical evidence.

The headlines about the United States and China have been dominated by the spread of COVID-19 and trade deal negotiations. Experts in U.S.-China relations have warned against preemptive disengagement in a time of increased need for international cooperation and coordination, even as tensions between the two countries continue to escalate in the media.

From Adam Segal's perspective, as an expert in security issues, technology development, and Chinese domestic and foreign policy at the Council on Foreign Relations, one of the emerging considerations that will prominently affect the tone and timbre of the relationship between the United States and China in the coming years is how the two nations compete with one another in technological and scientific research and innovation. He delved further into this topic in a lecture as part of the China Program's winter/spring colloquia series.

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As Segal and others describe, both the United States and China benefitted immensely from the globalization of scientific research and collaboration, but in recent years, both have also become wary of sharing talent and resources too broadly or across too many sectors. As a result, each country has taken various measures in an attempt to gain and regain perceived advantages over the other.

As China has tried to move up the so-called economic value chain from being an overwhelmingly manufacturing and heavy industry-based economy to being a leader in tech and digital economies, it has simultaneously tried to wean itself from a dependence on foreign technological infrastructure. In its efforts to create indigenous innovation and technological growth, it has openly tried to court talent and intelligence from overseas. To the United State's rising concern, however, the Chinese government has been less open about the means used to accomplish this aim.

On its part, the United States has upped its efforts to expand cybersecurity research and initiatives. The Trump administration has very vocally critiqued companies such as Huawei and urged allies to step back from business with the telecom and networking giant. Similarly, allegations of espionage against native Chinese and Chinese-American scientists and academics have escalated in recent months.

Segal argues that these simmering tensions signify the growing awareness each country has of the other's increasing capabilities in the cybersphere, as well as a heightened understanding and awareness of the shortcomings of their own systems.

"I think technology, which had usually been a fifth, sixth, seventh on the agenda in the U.S.-China relationship, is going to continue to be one of the defining issues that structure the relationship, and increasingly is one not just about concerns about national security, but about values and how we think about how technology is applied, and governance issues."

To watch Segal's full lecture, click the video below or find it on our YouTube channel. A transcript of his remarks is available

adam_segal_transcript_format.pdf

APARC’s Southeast Asia Program recently hosted the U.S. Ambassador to Vietnam Dan Kritenbrink, who joined faculty members from the Freeman Spogli Institute for International Studies and other Stanford experts for a roundtable discussion about U.S.-Vietnam relations and U.S. strategy in Southeast Asia.

Ambassador Kritenbrink outlined the priorities of the U.S. Mission Vietnam and commended the Vietnamese leadership on its cooperation on a range of issues that span economic development, nuclear nonproliferation, regional security, and people-to-people ties.

The year 2020 marks a quarter of a century since the United States and Vietnam established diplomatic relations. Vietnam is now the fastest-growing economy in Southeast Asia and has emerged as a U.S. partner in pushing back against Beijing's claims in the South China Sea. Yet there are limits to the partnership, as Vietnam is not a democracy and its communist government, having adopted a hedging strategy, is pursuing a multi-country foreign policy, including advancing defense ties with Russia. 

Roundtable participants listening to Ambassador Kritenbrink. Photo credit: Noa Ronkin.

The issues considered during the roundtable discussion with the Ambassador included some of the challenges and opportunities for Vietnam, which has more leverage to engage the region this year as it serves as chair of the Association of Southeast Asian Nations (ASEAN). It certainly has a full agenda for its chairmanship amid geopolitical tensions in the region, the need to balance the U.S.-China friction, the spread of COVID-19, a slowdown in global trade, and the looming environmental and social impacts posed by the threats to the Mekong river.

Ambassador Kritenbrink began his posting in Vietnam in November 2017 and has served as an American diplomat since 1994. He has completed multiple assignments related to Asia, including the roles of senior advisor for North Korea policy at the Department of State; senior director for Asian affairs at the National Security Council, where he worked on Vietnam and oversaw the negotiation of two Joint Statements regarding the U.S. Comprehensive Partnership with Vietnam; seven years in senior roles in the U.S. Embassy Beijing; and three prior diplomatic postings in Japan.

APARC is pleased to announce that two young scholars, Jeffrey Weng and Nhu Truong, have been selected as our 2020-21 Shorenstein postdoctoral fellows on contemporary Asia. They will begin their appointments at Stanford in autumn 2020.

The Shorenstein Postdoctoral Fellowship on Contemporary Asia is open to recent doctoral graduates dedicated to research and writing on contemporary Asia, primarily in the areas of political, economic, or social change in the Asia-Pacific, or international relations in the region.

Fellows develop their dissertations and other projects for publication, present their research, and participate in the intellectual life of APARC and Stanford at large. Our postdoctoral fellows often continue their careers at top universities and research organizations around the world and remain involved with research and publication activities at APARC.

Meet our new postdoctoral scholars:

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Jeffrey Weng
Shorenstein Postdoctoral Fellow on Contemporary Asia

Research focus: How does society shape language, and how does language shape society?

Jeffrey Weng is completing his Ph.D. in sociology at the University of California, Berkeley. He holds a BA in political science from Yale University, and his work has appeared in the Journal of Asian Studies and Theory and Society. His research focuses on the evolution of language, ethnicity, and nationalism in China.

Jeffrey's dissertation examines language in the context of Chinese nation-building. Mandarin Chinese was artificially created about a century ago and initially had few speakers. Now, it is the world’s most-spoken language. How did this transition happen? Weng's research shows how the codification of Mandarin was done with the intention to match existing practices closely, but not exactly. Top-down efforts by the state to spread the new language faced enormous difficulties, and ultimately its wide-spread adoption may have been catalyzed more by economic growth and urban migration. By investigating how these monumental social and political changes occurred, Weng’s work deepens the understanding of societal shifts, past and present, in one of the world’s predominant nations, while also contributing more broadly to scholarship on class, the educational reproduction of privilege, and the construction and reconstruction of race, ethnicity, and nation.

At Shorenstein APARC, Weng will continue to publish papers based on his doctoral research while reworking his dissertation into a book manuscript.

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Nhu Truong
Shorenstein Postdoctoral Fellow on Contemporary Asia

Research focus: Why are some authoritarian regimes more responsive than others?

Nhu Truong is a Ph.D. candidate in comparative politics in the Department of Political Science at McGill University, with an area focus on China, Vietnam, and Southeast Asia. She received an MPA in International Policy and Management from the Wagner Graduate School of Public Service at New York University, an MA in Asian Studies from the University of Texas at Austin, and a BA in International Studies from Kenyon College. Prior to embarking on her doctoral study, she worked in international development in Vietnam and Cambodia, and with policy research on China.

Her research focuses on authoritarian politics and the nature of communist and post-communist regimes, particularly as it pertains to regime repressive-responsiveness, the dynamics of social resistance, repertoires of social contention, and political legitimation.
 
Nhu Truong’s dissertation explains how and why the communist, authoritarian regimes of China and Vietnam differ in their responsiveness to mounting unrest caused by government land seizures. Drawing on theory and empirical findings from 16 months of fieldwork and in-depth comparative historical analysis of China and Vietnam, Truong uses these two regimes as case studies to explore the nature of responsiveness to social pressures under communist and authoritarian rule and the divergent institutional pathways that responsiveness can take. She posits that authoritarian regimes manage social unrest by relying on raw coercive power and by demonstrating responsiveness to social demands. But not all authoritarian regimes are equally responsive to social pressures. Despite their many similarities, the Vietnamese communist regime has exhibited greater institutionalized responsiveness, whereas China has been relatively more reactive.
 
As a Shorenstein Fellow, Truong will develop her dissertation into a book manuscript. She plans to continue exploring the variable outcomes and knock-on effects of authoritarian responsiveness in places like Cambodia, which will further support her comparative research on China and Vietnam and lay the groundwork for her next project.

The signing of President Trump’s Phase One trade deal with China has rekindled speculations about the future of the world’s second-largest economy. Many analysts have cited trade frictions between the United States and China as a driving force behind the slowdown the Chinese economy has experienced in recent years. It is not a tariff crossfire, however, that explains the slowdown, argues Nicholas Lardy, a leading expert on the Chinese economy.

Lardy, the Anthony M. Solomon Senior Fellow at the Peterson Institute for International Economics, offered a different view on China’s slowing economy in a lecture presented at the China Program’s 2020 winter/spring colloquia series, which examines the past, present, and future of the PRC at 70. Using data and trends from the last forty years of China’s economic growth, Lardy presented the case that the slowing trend in the Chinese economy is directly related to changes in how the government lends credit and to what he terms “resource misallocation.”

According to Lardy, the Chinese economy is slowing from the inside. The government’s recent campaign to deleverage the amount of credit coming out of the shadow banking system was arguably justified, but it has nonetheless reduced the amount of credit available to businesses, particularly private companies. As a result, the credit-to-GDP ratio has plateaued in the last several years and is growing in pace with the economy instead of ahead of it. 

Coupled with this is the observation that Xi Jinping’s government has actively sought to increase the size and scope of state-owned enterprises. Lardy’s research indicates that the assets of state-owned, non-financial companies in China are growing twice as fast as the overall GDP, a situation he feels is only possible if state companies are being allocated a disproportional share of credit and loans. Lardy shows that pre-2012, funding to private companies was at $3.6 trillion USD, but by 2016 it dropped to a mere $600 billion.

Taking these factors together, Lardy argues that the economic slowdown will continue if the Chinese government continues to aggressively emphasize party control and the importance of the state sector over private companies. While reporting on trade deals may dominate the media, “We will increasingly see friction not on tariffs, but on technology transfer and issues of technology,” he says. “The key thing to watch is whether or not Xi Jinping gets serious about reforming state-owned enterprises and having a financial system that allocates credit more efficiently.”

Listen to highlights from Lardy’s discussion at this link. A transcript is also available to download.